Bitcoin slipped below the $115,000 level on Tuesday as the crypto market faced nearly $961 million in leveraged liquidations. The sudden sell-off followed an extended rally to new all-time highs above $124,000 last week, raising fears of a deeper correction toward the $110,000 support zone.
Data from CoinGlass revealed that long positions accounted for the majority of the liquidations, highlighting the overleveraged state of the market. More than 60% of BTC/USDT perpetual contracts remain long-biased, leaving traders exposed to cascading liquidation risks if prices fall further.
Bitcoin Technical Patterns Signal Bearish Breakdown
Bitcoin’s weekly chart shows a rising wedge formation, a pattern often preceding bearish reversals. Analysts warn that a breakdown from this structure could send BTC tumbling as low as $88,000, nearly 26% below current levels.
On the daily chart, BTC also completed a double-top pattern at $123,000 with a neckline near $112,000. A sustained move below this neckline could target the $101,000 zone, reinforcing the bearish outlook.
Adding to the caution, Bitcoin’s RSI has formed a descending channel, indicating weakening momentum despite recent price gains.
Fed Policy and Institutional Buying in Focus
Beyond technicals, Bitcoin’s trajectory hinges on upcoming Federal Reserve events.
Investors are closely watching the release of Fed minutes and Chair Jerome Powell’s speech at the Jackson Hole Symposium. A hawkish tone from Powell could dampen hopes for a September rate cut, potentially accelerating Bitcoin’s decline.
Still, institutional accumulation remains strong. Tokyo-based Metaplanet recently added 775 BTC worth $93 million, while Michael Saylor’s Strategy purchased 430 BTC for $51 million. Bitcoin ETFs also saw $547 million in inflows last week, showing ongoing institutional interest even as volatility rises.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Could BTC Test $110K Next?
While some market watchers view the pullback as healthy consolidation, others warn of a flash crash scenario fueled by excessive leverage and false bullish signals.
If bearish patterns play out, Bitcoin could retest $110,000 or lower in the near term, especially if macroeconomic headwinds persist.
For now, Bitcoin trades around $115,000, with the next decisive move likely tied to Fed policy updates and investor appetite for risk.
Cover image from ChatGPT, BTCUSD chart from Tradingview
